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Defensive ETF (DBMF) Hits New 52-Week High

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For investors seeking momentum, iMGP DBi Managed Futures Strategy ETF (DBMF - Free Report) is probably on radar. The fund just hit a 52-week high and is up 38.2% from its 52-week low price of $25.00/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

DBMF in Focus

iMGP DBi Managed Futures Strategy ETF seeks long-term capital appreciation. It will employ long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income, currencies and commodities. The product charges 85 bps in annual fees (see: all the Hedge Fund ETFs here).

Why the Move?

Hedge volatility ETFs has been an area to watch lately as it could prove beneficial amid market uncertainty. These funds have the potential to stand out and outperform simple vanilla funds in case of rising volatility. Economists warned that the rapid tightening would hurt the labor and the housing spaces, thereby pushing the economy into recession and impacting the stock market.

More Gains Ahead?

Currently, DBMF might remain strong given a weighted alpha of 28.16 and 20-day volatility of 10.97%. As a result, there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.


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